Bitcoin Crash Linked To BlackRock IBIT Hedging, Arthur Hayes Claims
Arthur Hayes, co‑founder of BitMEX, has pointed to hedging tied to BlackRock’s iShares Bitcoin Trust (IBIT) as a major driver behind the recent Bitcoin sell‑off.
Several X accounts have reignited a long-running debate in bitcoin circles, arguing that a single onchain bitcoin now underpins multiple financial claims across exchange-traded funds (ETFs), futures, perpetual swaps, wrapped tokens, and structured products.
The Bitcoin price has been on one of its worst runs in recent years, falling by double digits over the past week.
February 7, 2026, 5:30 pmBitcoin’s hard cap is easy to understand: there will only ever be 21 million coins. What's hard to understand is that the marginal market is allowed to trade far more than 21 million coins worth of exposure, because most of that exposure is synthetic and cash-settled, and it can be created or reduced in seconds.
February 7, 2026, 5:15 pmArthur Hayes, co‑founder of BitMEX, has pointed to hedging tied to BlackRock’s iShares Bitcoin Trust (IBIT) as a major driver behind the recent Bitcoin sell‑off.
In early Q1 2026, the top cryptocurrency market is moving through a clear period of change. While prices across the market have pulled back, the mood among experienced investors is less about fear and more about repositioning. Capital is no longer chasing the highs of past rallies.
The selloff reflects bitcoin’s built-in volatility and market misreads of Fed policy, not structural weakness, aruged Bode.
Crypto sentiment was hit as Gemini plans to close operations in several regions and cut staff, while spot bitcoin ETF flows turned negative.
Over the past week, Bitcoin has been experiencing an intense movement as prices slid sharply from around $84,000 to around $60,000, representing one of the largest weekly declines in the present market. Currently, based on live market data, Bitcoin’s price has rebounded slightly to around $70,000, indicating some market resilience.
Market turmoil sent the digital currency favored by anti-establishment investors plunging to near $60,000 on Friday morning. This is a 50% decline from the record high it hit in October of last year, and it reflects a sharp 30% decline since January.
Bitcoin exchange-traded funds (ETFs) finally halted weeks of selling pressure with a strong inflow, offering a rare moment of relief. Ether and solana, however, remained under strain, while XRP continued to quietly rebuild momentum.
This week’s stories cut to crypto’s foundations. Tom Lee defended ETH treasury drawdowns as structural, not a flaw. The new Epstein file dump reignited scrutiny around Blockstream. Nic Carter showed most Bitcoin devs see quantum risk as distant, but legitimate.
The Bitcoin price displayed a staggering show of bearish pressure over the week. As the premier cryptocurrency lost its footing around the $84,000 support level, it entered a slippery slide, reaching approximately $60,000. Currently, the market is in recovery mode, with its price rising again to $70,000.